The crisis will lead to a spike in bankruptcies and we need to strengthen the code to be able to handle them effectively The lockdown, occasioned by the spread of the novel coronavirus, is causing significant stress for Indian business.
Even though the Reserve Bank of India (RBI) has instituted debt moratoriums and finance minister Nirmala Sitharaman has announced a slew of relief packages, one expects a significant spike in the number of bankruptcies.
Is India’s Insolvency and Bankruptcy Code (IBC) up to the task of this new normal? While much depends on how things pan out in the next few months, here are some pressing issues: Insolvency resolution traffic jam: According to Injeti Srinivas, corporate affairs secretary, since the